The UK Financial Conduct Authority (FCA) has published its final rules for firms supporting the buying, trading and holding of cryptoassets, applying obligations across regulated crypto activities with the broad aim of treating digital assets similarly to traditional finance (TradFi).
Key areas include financial resilience requirements, covering capital adequacy and stress testing, and new market integrity rules addressing insider trading and market manipulation. Stablecoins will also be subject to clear and transparent standards.
Protection, innovation
The new regulations seek to balance investor protection with innovation.
"This regime sets clear, predictable rules for firms across the full range of regulated cryptoasset activities," the FCA said. "It sets standards, strengthens consumer protections, and positions the UK as a trusted, competitive home for responsible cryptoasset innovation."
David Geale, the FCA's executive director of payments and digital finance, added that the framework does not force firms to choose between regulatory certainty and room to innovate.
Su Carpenter, executive director of CryptoUK, a trade body representing the UK crypto industry, said the final guidance gives firms an opportunity to develop and grow in a competitive jurisdiction.
The FCA acknowledged that the cryptoasset market is still young, and that risks will remain higher than in traditional finance, likely requiring iterative refinement of the regime as the market evolves.
Long consultations
The regulations are underpinned by the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, passed by Parliament on 4 Feb, which brought a broad range of cryptoasset activities within the FCA's regulatory perimeter for the first time. They are the culmination of three years of development, including industry and consumer consultations across four discussion papers and 10 consultation papers since 2023, as well as collaboration with international partners.
The Treasury has not responded to requests for updates on the US/UK Transatlantic Taskforce on Markets of the Future, which was designed to align cryptocurrency regulations between the two countries. Originally due to report in Mar 2026, the taskforce's work was delayed by the US federal government shutdown in Oct–Nov 2025. The report is now overdue amid reports that the US side is moving ahead regardless of the UK's position.
Key dates
The FCA's new rules will come into effect on 25 Oct 2027. Until then, its oversight of crypto will remain limited to financial promotions and anti-money laundering (AML) controls.
Preparations in the interim include the authorisation of crypto firms spanning trading platforms, intermediaries, custodians, stablecoin issuers and firms arranging staking, the process by which holders of certain cryptocurrencies lock up their tokens to support a network's operations and earn rewards. The application window runs from 30 Sept 2026 to 28 Feb 2027, with pre-application support meetings available from July.
Further developments expected later in 2026 include FCA consultations on decentralized finance (DeFi) guidance and operational resilience for firms using distributed ledger technology (DLT), as well as updates to the Financial Crime Guide relevant to cryptoasset firms.
The FCA and the Bank of England (BoE) will also consult later this year on how FCA rules will apply when a stablecoin issuer is recognised as systemic by HM Treasury.
